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Southwest Airlines is famous for operating at low cost. They achieve low costs because they are very selective in the people they hire and they create a friendly and supportive environment. In return, the employees support the company. Competitors have failed to duplicate this and Southwest has retained ______

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Answer: Its competitive advantage

Explanation: Competitive advantage refers to a situation when a company has some superior position in market than other competing firms.

In the given case, Southwest airlines is operating at low cost due to their high standards in recruitment and cooperative behavior towards their employees. Thus, they are offering something that no other firm is. Hence, due to their special behavior towards their employees they are having low cost and competitive advantage in market.

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